Aimee Brewster, granddaughter of Ann and Desmond Dean, had gone with her mother Bronwyn to see her grandparents' balloon ride on January 7, 2012.

She told a coroner's inquest which started yesterday into the deaths of the pilots and 10 passengers that the 33,000 volt power line was caught on the basket which led to a flash of light and a crackling sound before the power line snapped.

Brewster said she could hear people screaming as the basket caught fire and saw someone come out of the basket.

She said the basket drifted over a paddock at Somerset Rd and the flames went up the ropes.

"The balloon part caught fire and burnt really fast. The basket came down quickly."

She said she heard the impact.

Brewster also said she spoke to police some months later about seeing Hopping smoking on the morning of the flight.

She did not think anything about it at the time. She could not smell it and did not think Hopping was acting oddly.

The inquest is today expected to hear from ground crew from the day of the accident and from forensic scientists.